Homebuyers across the United States have been finding a friendlier housing market for about a year, with more plentiful supply, less competition, more selection and more time to shop, according to a recent report from Zillow.
Not so in the hottest markets, however, where demand for homes in preferred metropolitan areas outstrips the number of homes for sale.
"Competition among buyers will be stiff and sellers will have the upper hand in this year's hottest markets,'' Mischa Fisher, Zillow's chief economist, said in a post. "Shoppers will need to tap all the resources they can muster in these fast-moving markets, from their team of experts to tech aids to financial assistance."
The predicted fast home price growth in those markets, Fisher said, could mean that successful buyers gain equity more quickly.
To identify the hottest housing markets in 2026, Zillow economists analyzed the 50 largest U.S. metro areas for past and present home price growth; the firm's data showing speed of home sales, the share of sellers who cut prices and of those who sold above the initial asking price; and the number of new jobs created compared with the number of building permits issued for new homes.
The hottest markets tend to have fewer price cuts and more homes selling above list price, the analysis showed, indicating that sellers have the upper hand in negotiations. It also found that home prices tended to grow in these markets in 2025, when price growth overall was mostly flat.
See the accompanying gallery for the 10 hottest U.S. housing markets in 2026. Typical home values are as of October.
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